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Sodexo SWOT & PESTLE Analysis

ID : 52535153| Apr 2019| 15 pages


Business Sector :Hospitality

Operating Geography :France, Europe, Global

About Sodexo :

Sodexo was founded in the year 1966 by Pierre Bellon in Marseilles, France. Over the years it has proved itself to be a world leader in Quality of Life Services. Sodexo is the only firm to offer innovative services that caters to over 100 professions. Sodexo is a €20.4 billion company with over 460,000 employees as of Aug 2018. It is the 19th largest employer worldwide. Sodexo has 32,000 sites catering to 100million consumers per day spread across 72 countries.
Sodexo’s mission statement as per its annual report is to “Improve the quality of life of Sodexo employees and those we serve, and contribute to the economic, social and environmental development of the communities, regions and countries in which we operate.”

Sodexo Revenue :

€ 20,407 million- FY ended 31st August, 2018 (year-on-year growth of -1.4%)
€ 20, 698 million- FY ended 31st August, 2017

Competitive Analysis of Sodexo

The SWOT analysis of Sodexo is presented below:
1. Eminent Market Leader
2. Revenue recognition from diverse fields
3. Strong brand equity across markets
4. Innovation fostering culture
5. Acquisitions and technological investments strengthening capabilities across markets
1. Minimal investments in research and development in certain sectors
2. Decreasing supplier loyalty
3. Unexplored rural markets owing to infrastructure unavailability
1. Customer migrating to premium products
2. Increase investment innovative technologies and research and development
3. Incorporating ever changing customer preferences and requirements
1. Experimentation attitude of the changing demographics
2. Diminishing niche target markets
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Detailed SWOT Analysis of Sodexo



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1. Minimal investments in research and development in certain sectors: With the ever changing dynamics of the market and customer requirements, Sodexo needs to enhance its investments in certain segments. With the advent of competitors, Sodexo needs to concentrate more on customer services related applications. The concept of one size fits all is no longer applicable to its customers. Each of the clients now wish to have a personalized experience in all the services that they undertake. There are certain clients with whom Sodexo loses interaction beyond the site level. Owing to the short attention span that the customers are now witnessing, Sodexo has to strive to keep up with the pace. To continue to be the market leader the firm needs to implement a wide range of service design principles to cater to the requirements of the new generation customers who mostly rely on experimentation. The customers now wish to have a seamless digital experience with interactions mostly on a daily basis. Sodexo has a strategic corporate venture fund launched in the year 2016 with an initial fund of €50m to accompany the evolution in the markets, increase their capacity for innovation and research and development, enrich their offers and support Sodexo’s long term investment strategy.

2. Decreasing supplier loyalty: A market leader like Sodexo would always promise to deliver the best of services to its customers at the best prices. But this sometimes does not prove to be a wise move for the other stakeholders involved in the entire process. Sodexo is investing in conducting research and development to foster innovation which would eventually lead to reduction in the price levels in the supply chain. With the various shifts that Sodexo is witnessing it is also essential that the suppliers are informed and aware of the changes that they are about face to face. Sodexo should take the ownership and impart the relevant information and training that the suppliers wish to have if it wishes not to lose the huge supplier loyalty that it enjoys now. Suppliers are now exposed to more lucrative offers from other competitors who are trying their level best to emerge as world leaders and attain recognition.

3. Unexplored rural markets owing to infrastructure unavailability: This has certainly been one of the major challenges for Sodexo. The segment which has been most affected is the Restaurants segment. In the rural markets the adoption of raw materials and products is very slow resulting in great difficulty to the company. Cost also plays a role in not expanding businesses to the rural areas since procurement, setting up and making the venture functional would involve a lot of investment in it. Even reaching the destination would become difficult for the people who would be involved in the process. Lack of infrastructure would also hamper the business setup in rural areas. Moreover Sodexo would need to come up with multiple initiatives that would address customer requirements from rural and urban backgrounds leading to furthering the investment factor. The use of niche technologies would not be feasible in rural areas. Tapping the rural sector still seems to be an idea which needs to be deliberated upon.


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Major Competitors :

  • Compass Group
  • Aramark Corporation
  • Sysco Corporation
  • Cintas
  • UniFirst Corporation

Key Business Segments / Diversification :

Workplace & Technical Services Benefits & Rewards Services Personal & Home Services  
Food Services Facilities Management Services
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Check Out Analysis of Other Relevant Companies

References used in Sodexo Analysis Report

1. Sodexpo Website-

2. Sodexo Finance 2018-

3. Sodexo Content Marketing-

4. Sodexo Investor Presentation-

5. Sodexo Group Worldwide-

How to Reference This Page?

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SWOT & (2020). Sodexo SWOT & PESTLE Analysis - SWOT & [online] Available at: [Accessed 25 May, 2020].

In-text: (SWOT &, 2020)

Copyrights and Disclaimer

Sodexo SWOT and PESTLE analysis has been conducted by Upasana Mahapatra and reviewed by senior analysts from Barakaat Consulting.

Copyright of Sodexo SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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